Press release
Citi Trends Announces Third Quarter Fiscal 2024 Results
Total sales of $179.1 million; Comparable store sales growth of 5.7% Gross margin of 39.8%, expansion of 160 basis points from Q3 2023 Strong financial
About this update from Citi Trends, Inc.
[{"type":"text","content":"\nTotal sales of $179.1 million; Comparable store sales growth of 5.7%\n\n\nGross margin of 39.8%, expansion of 160 basis points from Q3 2023\n\n\nStrong financial position with liquidity of approximately $114 million and no debt\n\n\nStrong start to Holiday Season\n\n\nCompany raises Outlook for second half of Fiscal 2024\n\n\n SAVANNAH, Ga.--(BUSINESS WIRE)--\nCiti Trends, Inc. (NASDAQ: CTRN), a leading specialty value retailer of apparel, accessories and home trends for way less spend primarily for African American and multicultural families in the United States, today reported results for the third quarter ended November 2, 2024.\n\n\nFinancial Highlights – Third Quarter 2024\n\n\n\nTotal sales of $179.1 million decreased 0.3% vs. Q3 2023; comparable store sales, calculated on a shifted 13-week to 13-week basis, increased 5.7% compared to Q3 2023 driven by increases in traffic, basket and conversion, reflecting improved product and better allocation methods\n\n\n\nGross margin of 39.8% vs. 38.2% in Q3 2023, an increase of 160 basis points due to markup expansion and a 40 basis point improvement in shrink results from the impact of mitigation efforts\n\n\n\nSG&A of $74.7 million, $74.6 million as adjusted* vs. $69.7 million, or $70.8 million as adjusted* in Q3 2023; approximately $1.6 million of the increase was due to one-time strategic costs in support of turnaround efforts, including a customer and market insight study and consulting to accelerate improved shrink and to support operational process improvements across the organization\n\n\n\nNet loss of $(7.2) million, or adjusted net loss* of $(6.5) million, vs. net loss of $(3.9) million, or $(4.6) million as adjusted* in Q3 2023\n\n\n\nAdjusted EBITDA* loss of ($3.3) million compared to adjusted EBITDA* loss of ($2.3) million in Q3 2023\n\n\n\nClosed 4 stores to end the quarter with 593 locations; 23% of the fleet in CTx remodeled format\n\n\n\nCash of $38.9 million at quarter-end, with no debt and no borrowings under a $75 million credit facility\n\n\n\nQuarter-end total dollar inventory decreased 1.7% compared to Q3 2023\n\n\n\nChief Executive Officer Comments\n\n\nKen Seipel, Chief Executive Officer, commented, \"Our third quarter performance of mid-single digit comparable store sales growth and a 160 basis point improvement in gross margin are early indicators that o...